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Jun 30, 2022
Napco Q4 2022 Earnings Report
NAPCO's Q4 2022 earnings were announced, featuring record sales and net income for the quarter.
Key Takeaways
NAPCO Security Technologies reported a strong fourth quarter with a 22% increase in net sales, reaching a record $43.2 million. Recurring service revenues increased by 33% to $12.7 million, and net income rose by 36% to a record $7.5 million. The company's performance was driven by growth in both equipment and recurring service revenues, with gross margins for recurring service revenue remaining robust at 87%.
Net sales increased by 22% to a quarterly record of $43.2 million.
Recurring service revenue increased by 33% to $12.7 million.
Net income increased by 36% to a record $7.5 million.
Adjusted EBITDA increased by 29% to $9.3 million.
Napco
Napco
Forward Guidance
NAPCO is focused on delivering value to shareholders by generating revenue growth and increased profitability for fiscal year 2023 and beyond. The company is expanding recurring revenue streams with existing and new products, such as AirAccess® products, and continues to focus on providing seamless security solutions.
Positive Outlook
- School security jobs are returning.
- Recurring service revenue remains strong.
- Expanding recurring revenue streams with existing and new products.
- Seasoned management team with experience dealing with supply chain shortages
- Demand for products and services continues to be very strong.
Challenges Ahead
- Ongoing supply chain challenges, electronic component shortages and logistics delays.
- Historically high backlog levels may continue throughout calendar 2022, particularly for electronic products.
- Hardware margins continue to be affected by the ongoing impact of supply chain constraints and higher component prices.
- Volatility associated with shortages of electronic components
- Increased shipping costs and raw material price inflation.